Defaults and Decisions: Choice Architecture and Consumer Opt-Out

The author thanks God. The author thanks his advisors Stefano DellaVigna, Jeff Perloff, Ben Handel, Dmitry Taubinsky, and Aprajit Mahajan. The author thanks Douglas Bernheim and John Cochrane for their comments. The author thanks students and faculty at the Eddie Lunch seminar (Stanford), Stanford GSB Marketing seminar, Chicago Booth Marketing Seminar, University of Rochester Marketing seminar, UCB Haas Marketing seminar, UC Berkeley Psychology and Economics lunch seminar, and the UC Berkeley IO seminar. Last, the author thanks Gifty Asare and the UC Berkeley ARE and Economics PhD students for their comments and contributions. This paper was previously titled “The Economic Value of Norm Conformity and Menu Opt-Out Costs: A Field Study in the Taxi Industry.” All errors are the author’s.